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Ruth Company Produces 1 000 Units Of A Necessary Component With The Following Costs Direct

May Company produces 1,000 units of a necessary component with the following costs: Direct Materials $48,000?

Moore Company produces 1,000 units of a necessary component with the following costs:

Direct Materials $48,000
Direct Labor 32,000
Variable Overhead 8,000
Fixed Overhead 14,000

Moore Company could avoid $6,000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what isthe maximum external purchase price that Moore Company would accept to acquire the 1,000 units externally?
$94,000
$108,000
$88,000
$96,000
$102,000

Ruth Company produces 1,000 units of a necessary component with the following costs Direct Materials $24,000?

Ruth Company produces 1,000 units of a necessary component with the following costs


Direct Materials $24,000
Direct Labor 16,000
Variable Overhead 4,000
Fixed Overhead 7,000

Ruth Company could avoid $3,000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Ruth Company would accept to acquire the 1,000 units externally?

Under absorption costing, a company had the following unit costs when 8,000 units were produced.?

Direct labor $8.50 per unit
Direct Material $9.00 per unit
Variable Overhead $6.75 per unit
Fixed Overhead ($60,000/$8,000units) $7.50 per unit
Total production cost $31.75 per unit

Compute the total production cost per unit under absorption costing if 30,000 units had been produced

Accounting problem help?

Ruth Company produces 1,000 units of a necessary component with the following costs:


Direct materials $27,000
Direct labor 16,000
Variable overhead 4,000
Fixed overhead 7,000

None of Ruth Company's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8,000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Ruth Company would be willing to accept to acquire the 1,000 units externally?

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